Role of M&a
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The Role of Finance in Successful Serial M&A
What distinguishes companies that gain maximum competitive advantage from mergers and acquisitions—deal after deal— from those that do not? An Accenture survey of finance and strategy executives from serial acquirers around the world suggests that successful M&A is based on five key practices.
Why do companies decide to intensify their merger and acquisition efforts, and what separates those that generate value from their M&A deals from those that do not? In a 2011 global Accenture survey of finance and strategy executives from serial acquirers around the globe (organizations that have acquired more than two businesses within the past five years), we sought to find answers to these questions. In this study, we also placed particular emphasis on postmerger integration (PMI) for the Finance function. (See “About our research.”) Our respondents’ most commonly cited reasons for M&A were to gain market share and to drive top-line growth. (See Figure 1.) Indeed, when serial M&A succeeds, it becomes a powerful source of competitive advantage. Serial acquirers with strong M&A capabilities outperform their industry peers in terms of overall growth and value generation.
Figure 1: Reasons for M&A Primary business purpose of the merger(s) and/or acquisition(s)
Gain market share Drive top line growth/increase revenues Expand global footprint Move into a new market segment Achieve cost synergies Acquire technology Acquire R&D Move into a new geography Reduce competition Other Source: Accenture Serial M&A Survey, 2011 1% Base = All Respondents; N=151 35% 34% 32% 45% 42% 41% 55% 64% 63%
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About our research
In 2011, Accenture conducted a survey to explore the aspirations and best practices of companies that engaged in serial M&A activity. Our survey sample comprised 151 finance and strategy executives from 12 countries around the world, representing 21 industries. Forty percent of the respondents
The Role of Finance in Successful Serial M&A
What distinguishes companies that gain maximum competitive advantage from mergers and acquisitions—deal after deal— from those that do not? An Accenture survey of finance and strategy executives from serial acquirers around the world suggests that successful M&A is based on five key practices.
Why do companies decide to intensify their merger and acquisition efforts, and what separates those that generate value from their M&A deals from those that do not? In a 2011 global Accenture survey of finance and strategy executives from serial acquirers around the globe (organizations that have acquired more than two businesses within the past five years), we sought to find answers to these questions. In this study, we also placed particular emphasis on postmerger integration (PMI) for the Finance function. (See “About our research.”) Our respondents’ most commonly cited reasons for M&A were to gain market share and to drive top-line growth. (See Figure 1.) Indeed, when serial M&A succeeds, it becomes a powerful source of competitive advantage. Serial acquirers with strong M&A capabilities outperform their industry peers in terms of overall growth and value generation.
Figure 1: Reasons for M&A Primary business purpose of the merger(s) and/or acquisition(s)
Gain market share Drive top line growth/increase revenues Expand global footprint Move into a new market segment Achieve cost synergies Acquire technology Acquire R&D Move into a new geography Reduce competition Other Source: Accenture Serial M&A Survey, 2011 1% Base = All Respondents; N=151 35% 34% 32% 45% 42% 41% 55% 64% 63%
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3
About our research
In 2011, Accenture conducted a survey to explore the aspirations and best practices of companies that engaged in serial M&A activity. Our survey sample comprised 151 finance and strategy executives from 12 countries around the world, representing 21 industries. Forty percent of the respondents